Brad Brooks: The “Apple Tax”
Ina Fried of CNET News did a recent interview with Brad Brooks, the corporate vice president for Windows Consumer Product Marketing at Microsoft, in which Brad explains that Mac buyers pay what he calls the ”Apple tax”. According to him, you pay more for a Mac in time and mone than you would a Windows-based PC. Is it me or does this sound a lot like what John McCain has been saying about Barack Obama. “Vote for ‘that one‘ and you’re sure to get higher taxes!”
The Choice Tax
There really is a tax around there for people that are evaluating their choices going into this holiday season and going forward. There’s a choice tax that we talked about, which is, hey, you want to buy a machine that’s other than black, white, or silver, and if you want to get it in multiple different configurations or price points, you’re going to be paying a tax if you go the Apple way.
I’ll admit it and say that Brad’s got a point…to an extent. There are choices when buying a Mac and each of them do allow for some limited configuration options. If you need a laptop then there are three different choices: MacBook, MacBook Pro, and MacBook Air. Need a desktop? You have three choices: Mac mini, iMac, and Mac Pro. Each of them are targeted towards different users with different needs. As far as design, yeah, you’re pretty much stuck with whatever Apple designs. But let’s face it, your typical Apple buyer isn’t concerned about what the computer looks like. Apple has already taken care of that by creating something that is simple and elegant. I rarely see anyone knock Apple for their designs. But for those who simply want something different then, yeah, they’ll have to look elsewhere. Apple is about providing a seamless experience; not about providing customers every option under the sun.
The Application Tax
There’s going to be an application tax, which is if you want choice around applications, or if you want the same type of application experience on your Mac versus Windows, you’re going to be purchasing a lot of software. And even at that you’re not going to get the same experience. You’re not going to get things like Microsoft Outlook, you’re not going to get the games that you’re used to playing.
Well, yes and no. Yes, you will likely have to purchase some software to replace versions that are comparable on the Mac. But it’s like that with any operating system. Hell, going from XP to Vista could require a customer to have to purchase software upgrades. What makes the Mac any different?
And, no, you’re not going to get Microsoft Outlook. But what you will get is a set of programs that come default on the operating system that will suffice for most users: Mail, iCal, and Address Book. For most people, these programs do enough to where Outlook isn’t really needed. Now, if you’re on an Exchange server then, yeah, you’re gonna need Office.
And games? Last I check virtually all of the most popular games are available on the Mac: Spore, World of Warcraft, Call of Duty, The Sims, and many, many more. Not every game is accounted for but, again, most people buying Macs aren’t really buying them to play games.
The Technology Tax
There’s a technology tax–Apple still doesn’t have HDMI, doesn’t have Blu-ray offerings, doesn’t have e-SATA external disk drives that work at twice the speed of FireWire. And so you’ve got all of these things that are truly taxes.
Apple generally doesn’t adopt a technology unless they are sure that it will be standardized. HDMI may be a current standard for televisions, but a standard for computers? Umm, not really. Most people don’t really need HDMI ports on their computers. Blu-ray adoption rates are pretty slow right now and it’s entirely unclear as to whether there’s a market there yet for Blu-ray drives on computers right now, thus the reason why Apple has decided not to adopt it just yet. The same applies for e-SATA. Why spend money providing the technology for something that isn’t a proven standard and/or there isn’t a good market for? Doesn’t make sense.
The Upgrade Tax
You’ve also got an upgrade tax. The only machine, as far as I know, within the Apple lineup that’s actually upgradeable is the Mac Pro, the $2,800 version, which is (more expensive than) just about any PC configuration that you get from any one of our manufacturers.
The average user has no need for the Mac Pro. The Mac Pro is professionals and/or enthusiasts who really need a high-end workstation computer for gaming, audio/video production, 3D animation, graphics, and other resource intensive tasks. Most people will end up spending about the same as they would for any other quality PC depending on their needs. Every Mac allows for memory upgrades and some even allow for hard drive upgrades and potentially processor upgrades. But, let’s face it, the average computer user doesn’t really upgrade their video card, processor, audio card, or any other components. Most use the computer as-is for the life of the computer. They might upgrade the memory once but that’s about it.
The Windows Tax
If people want a Windows experience, then start with a machine that was built for the Windows experience. There’s no question, if you look at it, and go to Apple’s Web site today, their No. 1 selling feature that they’re telling students as to why buy a Mac is because it does run Windows, and that you can get Office when you’re running it in Boot Camp or Parallels. But, then you’re just paying that tax again. You’re paying for an upgrade to Windows, you’re paying for the full version of Office, where you could get all of that at one price, at a price point that with a Blu-ray disk drive you can get with an $800 range from an HP or Sony.
I just went to the Apple site and clicked the Mac link at the top. Although it is mentioned in the Get a Mac FAQ page, I wouldn’t say that Apple is touting it as the main selling feature. Same applies to the Education page for students. Mac’s can run Windows; that’s just a fact. For some people, the only reason they don’t buy a Mac is because they need Windows to run one stinkin’ program. If they already have a Windows license then they don’t need to buy anything else. They can just buy a Mac and install Windows with BootCamp. So, yeah, it’s a selling point but not the only one. Besides that, why the hell would anyone go and buy a Mac, buy a copy of Windows, and buy Office 2007? Why not just buy the Mac and a copy of Office 2008?
The “What am I getting into” Tax
I think the question is, though, do customers really know what they’re getting into? I don’t personally believe that customers really know that a copy of Parallels is going to cost them $80, or that when they really look at what they’re going to have to pay in terms of another $200 for a (full boxed copy of Windows), that they’re going to pay for another $149 for MobileMe to put on there, Internet services, which they can basically get all the same functionality when they have Windows and Windows Live working together.
Yes, customers know exactly what they are getting into when they buy a Mac. In fact, I think Mac users are perhaps some of the most educated computer users out there. Most Mac users don’t really need Windows so the argument about what is needed to run Windows is moot. The ones that do need Windows are well aware of what is required.
As for MobileMe, most of the software that is needed already comes with a Mac. MobileMe allows you to sync your calendar, contacts, mail and more between your computer, the internet, and your iPhone. And it even works with Outlook. Can Windows Live do that? Can it sync with Windows Calendar and Address Book? How about syncing with Outlook? No? Then what’s the benefit of having Windows Live then?
The “False Security” Tax
That is a fallacy to think that Macs are somehow invulnerable, or impervious to virus, or phishing, or spyware. And we will tell you that based on our own data that you’re 60 percent less likely to get any type of virus…if you’re running Windows Vista versus Windows XP SP2. And also is that things like phishing scams are very real to the average consumer. And when you have Windows Vista running with IE7, we know that that capability together is blocking well over 11 million different phishing attacks a week. You’ve even got, No. 1, service providers like eBay out there on the Internet today that won’t even recommend you using the Safari browser because it is so compromised when it comes to phishing attacks. So there really is a security story here around Windows Vista running in connection with IE7 that really does create safety for our customers.
You’re right in that some Mac users have a false sense of security. But not all of them think that way. Any computer, regardless of the operating system, is vulnerable to viruses and such. But to say that somehow Windows Vista and Internet Explorer 7 are somehow more secure than OS X and Safari is a silly argument. Macs are more secure only in that it’s not as big of a target as Windows-based machines are. There just aren’t any real virus, phishing, and/or spyware threats out there for the Mac. Those that do get these threats usually get them because they did something stupid. Most Mac users are pretty well educated on what to do security wise so most threats aren’t much of a problem.
The “It’s really not about Apple” Tax
The question is, or the argument is, that understanding what the true value is of Windows and the choices that they make every day, really is not about Apple. It’s really about what is Windows, and understanding having customers understand the different things that Windows brings in terms of compatibility and choice to their everyday lives. And we have just not done an effective job of helping tell that story up until the last couple of months.
So the problem is that customers just aren’t as well educated about Windows as they should be? I take that as a back-handed compliment to Apple because, quite frankly, Apple has done a great job in educating their customers about their products. For the most part, Apple’s products speak for themselves as does OS X. So, honestly, as a business helping understand what the true value is of Windows has everything to do with Apple. Till you understand what makes OS X so great and the value it offers customers you’re never going to be able to truly relate to customers on what makes Windows so different.
Put it this way, I used Windows as my primary OS for the better part of ten years, starting with Windows 95 and used every OS that Microsoft has put out all the way up to Windows Vista. I have never been more confused and felt less educated that the time I spent with Vista. By comparison, the sheer experience of OS X was a breath of fresh air. Never once did I feel like I wasn’t able to do something, that Apple wasn’t able to educate me on what I needed to know about their OS.
The “You can’t do that on a Mac” Tax
But there’s also productivity value that you get on Windows Vista that you can’t get on a Mac. You can’t get Outlook, you can’t get Visio, you can’t get Project. And when you do get applications such as that, they’re usually stripped-down versions that don’t have nearly the amount of features, or the usability like the ribbon on Office. Those types of things just don’t come with a Mac. And that you don’t get the best in terms of hardware experiences, you don’t get high-definition playback on Blu-ray DVD on a Mac. You can’t do it, can’t get it, it’s just not there.
Virtually every application available for Windows has something comparable to it on the Mac. And, no, they aren’t stripped-down version, rather they are just more user-friendly and take a different approach to solving the same problem. Can’t use Outlook? Use Entourage instead (which comes with Office 2008). Visio? Use OmniGraffle. Project? Use OmniPlan or Merlin. Is every single feature accounted for? Not necessarily. But, then again, not every feature is needed. Features like the Office ribbon aren’t needed because OS X itself provides an API that allows for very robust user interfaces. These apps are still very, very powerful and do the job. The argument could be made that apps like these allow you to get your work done faster since they’re easier to use.
Seems that Brad’s argument always comes back to the same thing: Macs can’t play Blu-ray. Maybe not now, but someday they will. You mean to tell me that a good computer experience is predicated on the presence of Blu-ray playback? Who cares! So you can’t play Blu-ray movies. So what? Other than the average traveller who likes to play movies on his/her computer, who else really cares about Blu-ray? Again, adoption rates are slow as it is. Why waste money on an unknown market?
What’s interesting about this interview is that not once did Brad mention the word “design” as part of the description of Windows. The keywords I kept seeing were “features”, “choice”, and “experience” to describe what Windows is. The thing that folks like Brad Brooks, Steve Ballmer, and other at Microsoft simply don’t get is that design matters. It matters a lot. And it especially matters in the case of an OS. Design is more than just the sum of a product’s features. It’s not enough to simply have an array of choices if the majority of choices aren’t that good to begin with. And the user experience is entirely dependent on the design of your product. Good design is about communication, solving problems, and relaying the right information to the user. Without good design, all the features and choices in the world will only make your product come crashing down.
Is there an “Apple Tax”? No, there is not. People buy Macs because they want a good user experience. They want a product that is well designed, speaks to them, and does what it’s supposed to do. As an ex-Windows users, I believe that a “Microsoft Tax” exists a lot more than an “Apple Tax” does simply due to the lack of user experience and design that exists in Vista.
Just like John McCain, Microsoft just keeps on lashing out at Apple with no real argument other than “Apple sucks!” When will they ever learn that a better strategy would be to simply make a better product.

October 16th, 2008 at 9:03 am
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